Decoding Slowdown: India's export needs a paradigm shift

Decoding Slowdown: India's export needs a paradigm shift

Indian export is globally uncompetitive because of high cost of credit, poor skill and innovation and high tax component which the government needs to address

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Prasanna Mohanty
  • Sep 11, 2019,
  • Updated Sep 11, 2019 2:31 PM IST

India's net export, one of the four key components of the GDP, has been in negative zone for decades, proving a big drag on its growth story. The gap between India's export and import has been growing bigger and bigger in the past decade. It crossed the $100 billion mark in 2008-09 and has remained above that since, clocking $184 billion in 2018-19.

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Higher the negative trade balance, higher the current account deficit (CAD) and higher the drag on foreign exchange reserve . This has been a cause of prolonged anxiety.

India's net export, one of the four key components of the GDP, has been in negative zone for decades, proving a big drag on its growth story. The gap between India's export and import has been growing bigger and bigger in the past decade. It crossed the $100 billion mark in 2008-09 and has remained above that since, clocking $184 billion in 2018-19.

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Higher the negative trade balance, higher the current account deficit (CAD) and higher the drag on foreign exchange reserve . This has been a cause of prolonged anxiety.

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